DIFOT and OTIF (Logistics And Supply Chain KPIs)

Understanding DIFOT and OTIF in Logistics and Supply Chain KPIs

DIFOT (Delivered In Full, On Time) and OTIF (On Time In Full) are among the most critical key performance indicators used in supply chain management and logistics. These KPIs measure a company’s ability to deliver products according to customer expectations — in the correct quantity, quality, at the agreed location, and within the stated delivery time.

Effectively tracking DIFOT and OTIF helps businesses assess how well their supply chain operations meet customer demands, revealing insights across production, warehousing, and transportation.

What Does DIFOT and OTIF Measure?

• Delivery in Full: Were the products delivered in the exact quantities ordered?
• On Time: Were the products delivered within the promised date or timeframe?
• Delivery Accuracy: Was the delivery made to the correct location and did it meet quality standards?

In many cases, DIFOT and OTIF are measured as a combined metric that indicates overall delivery performance.

How to Calculate OTIF Percentage

The most common calculation for OTIF is based on quantities delivered:

OTIF % = (Quantity of deliveries made On Time In Full / Total quantity of deliveries) * 100

Alternatively, some companies calculate OTIF based on the number of actual orders or the quantity of order lines, depending on their operational processes.

Key Requirements for Accurate OTIF Measurement

• Accurate timestamps: Precise delivery dates or even exact delivery times (hour and minute) are essential. This is especially critical for logistics providers like FedEx or DHL.
• Consideration of split orders: For orders split across multiple deliveries, each delivery line should be included in reporting.
• Data integrity: All logistics data must be consistently and correctly recorded to allow meaningful KPI analysis.

Why Are DIFOT and OTIF Important?

Businesses that measure OTIF consistently tend to reap multiple benefits:

• Improved customer satisfaction: Meeting delivery promises builds trust and loyalty.
• Reduced operating costs: Better inventory control and fewer expedited shipments reduce expenses.
• Increased sales growth: Products available when and where the customer needs them lead to higher revenue.
• Enhanced supply chain visibility: Tracking allows faster identification and resolution of issues.

Niche Examples of OTIF Applications

Retail Sector

In retail, OTIF helps ensure that products arrive on time for promotional events or seasonal sales, essential for maximizing sales impact and minimizing stockouts.

Manufacturing

Manufacturers rely on OTIF to coordinate just-in-time inventory, reducing holding costs while maintaining uninterrupted production lines.

Pharmaceuticals

Precise delivery timing and quantity are vital in pharmaceuticals to comply with safety standards and prevent expiry-related losses.

Integrating DIFOT and OTIF into Your Performance Dashboard

To make these KPIs actionable, integrate DIFOT and OTIF metrics into your logistics or supply chain dashboard. State targets clearly and monitor trends over time to uncover improvement opportunities.

Simple DIFOT & OTIF Performance Tracking Table

Step-By-Step Guide to Improve Your OTIF Performance

1. Establish clear definitions: Define what constitutes “on time” and “in full” for your business context.
2. Implement accurate data collection: Automate delivery tracking with time stamps and quality checks.
3. Monitor metrics regularly: Use dashboards to track OTIF and DIFOT trends weekly or monthly.
4. Analyze root causes: Identify delays, shortages, or errors causing failures.
5. Collaborate with partners: Engage suppliers and logistics providers to resolve issues.
6. Optimize inventory and processes: Use demand forecasting and inventory planning to avoid stockouts or delays.
7. Set realistic targets and review: Adjust processes to continuously improve delivery performance.

For businesses seeking to enhance their financial and operational reporting to better manage these KPIs, the Automated Excel Reporting solution can streamline data consolidation and visualization.

Additionally, for long-term strategic growth, employing the Small Business Growth Strategy Pack can help link supply chain performance to broader business goals and customer satisfaction improvements.

Summary

DIFOT and OTIF remain essential KPIs for any business looking to excel in supply chain and logistics management. Measuring and improving these indicators ensures you deliver customer value reliably, reduce costs, and grow your business sustainably.

Use the included tracking table and step-by-step guide to implement these KPIs in your operations today.